The Future Business Model of Facebook profile

The Future Business Model of Facebook profile

The one thing Facebook has not figured out yet is how to utilize their fabulous product to make the most money, consistently and on an ongoing basis - i.e. finding the right business model. A really intriguing topic to write my very first blog about, because, in my opinion, finding the right business model for Facebook cannot be accomplished using conventional thinking, like, solely looking at Google and their search engine ad revenue, for example. Facebook is unique, so you need to find unique solutions. Actually, there is not one single best business model for this site, rather a multitude of potential revenue streams from very different sources. It is not only "how do we generate revenue", but equally important "when do we start with which one". This might sound strange now, but it will get clear, when reading this. Summarized, it is basically taking your assets and what made you successful in the first place and finding new ways to use them effectively.

Business Network / Business Profile

I thinking about this since beginning of February. Wouldn't it be great, if you'd only need to login once and have your private and professional network in one view, although strictly separated from each other, depending on your settings? Wouldn't it also be great for companies to have a business network with about 7 times more users than LinkedIn, that can offer people having every kind of skills and experience imaginable as well as offering any kind of services and products among their 500 million users? Wouldn't it be great for Facebook to be able to get into companies blocking the site so far, generating new streams of ad and other revenue from recruitment companies and others? But most importantly, Business Network market leaders LinkedIn and Xing charge their users, meaning Facebook would have an absolute legitimate case to do so as well for their business network users. This means, that the crucial, and psychological, hurdle of charging end-users can be overcome via a sideway, so to speak, without having to expect a massive backlash or a mass exodus of users. Of course, they can only start to charge the active business network users, but when the door is open once...needless to say, this has the highest potential impact on the bottom line of Facebook.

All this would happen, if Facebook offered a Business Network, too. This is not even a huge undertaking for them really, just

Sphere Marketing Group Secret To Facebook Advertising

Sphere Marketing Group - Secret To Facebook Advertising

Facebook advertising has proven to be profitable and incredibly powerful. Not only does Facebook have massive reach, it has the ability to precisely target your optimal audience. Many new marketers hear about the growth potential that Facebook can offer and tend to just ?dive? in. Those who start a campaign without taking the time to really learn the Facebook platform tend to waste a lot of money and see a very low ROI.

The biggest difference between Facebook Advertising and PPC (Google Adwords) is that users on Facebook have not searched for something similar to what you are offering like they would on Google. Your Facebook ad is not triggered by a keyword or a keyword phrase which means you have to take a fundamentally different approach if you want your ad to convert.

Another problem with advertising on Facebook is that people are on Facebook to be on Facebook. Users are typically not interested in being redirected to a website or promotion that you are offering.

In this article, I am going to discuss a few creative ways you can overcome these two problems and build a successful Facebook advertising campaign.

First off, lets discuss the targeting capabilities of Facebook and what factors decide when and where your ad is placed. Many of us have seen the Facebook like button on almost every blog and website. A like button is usually connected to specific content or blog post. When someone presses that like button, they are showing interest in that particular topic which plays a big role in which ads will be shown to them on Facebook. For example, if you like a page on dogs, chances are you will be shown some ads that are related to dogs in the future when you are on Facebook.

Facebook users can also add activities and interests to their Facebook profile. There are plenty of pages that are based on a specific interest such as working out, cars, music genres etc. that you can like or become a member of. These activities and interests also play a vital role in deciding which ads will be shown to you as well.

Facebook has recently implemented a new targeting feature that most people do not know about. Facebook will actually detect the content of users status updates and will process this information into an algorithm which will help decide which ads are displayed to whom and when. If someone makes a status that includes working out (?I enjoyed my workout today?) that person may be shown ads on workout plans and supplements.

Facebook?s targeting abilities are so advanced that you can target users based on their age, gender, interests, activities, and even target them on their birthday. (eg. Happy Birthday from ?..)

By knowing how Facebook targets your audience, you can create more effective ads that have a better chance of converting Facebook users into customers. When creating your ad, have a fairly broad headline that would appeal to someone interested in a topic as opposed to a product. For example, ?Trying To Lose Weight?? Would be more effective than ?Order John Does Slimming Juice Today? because your ad will be shown to people who have generally shown interest in weight loss.

To address the second problem of Facebook users not wanting to leave Facebook, we need to consider 3 options on where to direct them after your ad is clicked.

Option 1 is to direct them to your company or product fan page. This is an effective way to get a like and put your brand name in that consumers head. The problem with this is that most businesses are not satisfied with paying to just generate a fan. They want the user who clicked their ad to engage with their company on a higher level and hopefully turn into a lead or sale which most Facebook fans do not.

Option 2 is to direct the user straight to your website. The advantage of this is you have more control over the experience that the potential customer will encounter and to most advertisers that is worth more then simply getting a ?like?. But as I pointed out before, Facebook users are on Facebook to be on Facebook and will usually result in users just clicking away from your site giving you a high bounce rate.

Option 3 is more of a mix between option 2 and option 3 and gives advertisers the best of both worlds. How we do this is by have a store front on your company Facebook profile where users can purchase your product or service as well as like your page. If a Facebook user decides to purchase your product or service, they will be directed to your website where they can do so. By doing this, you have created a slightly better transition between your ad and your website by having the user interact with your Facebook page before purchasing your product. This has been proven to give advertisers a higher conversion rate and ultimately a higher ROI.

The last thing to remember is test everything. Try out different ads and different Facebook storefronts and always track the results and find ways for improvement. Eventually you will discover the perfect combination that gives you not only more likes, but more conversions.